JanetM

If he is in jail it would seem that he is a terminated participant and eligible for distirbution. Why go with hardship?

That is rather scary. We contribute to a few of them and they are all in bad shape. Thinking about the cost if mass withdrawal occurs is hurting my brain.

Don't forget to amend tax return is it was filed already. Yes, I know you have to make the contribution before you file, does'nt mean they always do.

IMHO if you add attachments they just get tossed out. Why do something that is not required?

It is my understanding you file a 5500 but don't need an audit.

The SMW multiemployer plan has language saying they can terminate, modify, suspend or amend the plan at any time by vote of board of trustees. Would imagine just about all the multis have the same language.

QDROphile pease explain that. We have couple multiple employer plans at our company - resulting from sale of a entity to another corporation. I don't know of any issues this raised outside maybe having company stock in the plan.

I would include them with fees as they are cost of running the plan.

Hmmm a dilema. You can file two forms with same year on them, just make sure you indicate the dates the return covers. This is very common when sponsors have fiscal years or change plan years.

My vote would be no. They are now an active participant and can't receive distribution.

As to the Interest only part, I would avoid that one at all costs. Some fiduciary somewhere will be on the hook for allowing an investment that is not in the best interest of the plan participant. Remember the focus is on the Plan being a vehicle for saving, not buying a house.

IMHO that elimiates an optional form of benefit and does run afoul of 411(d)6. In addition, you may also have a BRF issues if they try to give actives and retires one set of options and deferred vested another.

That doesn't make a difference. Allocated and Unallocated contracts file Schedule A's. Report unallocated totals on Part 2-line 5 and allocated totals on Part 2-line 6.

Final loan regs - 72(p) - were issued 7/31/2000 and applicable to all loans made on or after 1/01/2002.

IMHO I would only care that the name on the form matches what's in the payroll system. What do you do in payroll after someone marries or divorces and changes their name? After getting married or divorced it takes a bit of time to get a name changed.

No activity? You mean you had no earnings, fees, or anything. I would continue to file Schedule A. You should be reporting the beginning and ending values of the contract as well as lives covered.

IMHO you have fiduciary issue in that the funds left in the GA didn't earn anything. Doesn't seeem to be prudent investment made on befalf of the participants.

If done right you can do it. You have to pass coverage, that is the key. You can exclude a group by class, ie those employed at specified location or those employed at certain jobs. We currently do this by naming a specific location in Georgia. No one at that facility gets safe harbor. Not sure on the second part.

As long as you amend the plan to have new year end. You should be specific on covered comp, proration of hours and vesting.

HiKids, You are correct that you don't HAVE to sign. The IRS issued temporary regulations [Reg. Sec. 1.6081-11T] on November 7, 2005 under which the Form 5558 no longer requires taxpayers to provide an explanation of the need for the extension of time to file or a signature. Regardless, I plan to sign all my extensions.

Sure audit fees can be paid with plan assets. Don't forget Trustee fees and recordkeeping fees.

Can't the small employer cut a check Multi-employer plan the same time they cut check to employee? Don't understand the problem with segregating the assets immediately unless the employer has cash flow issues and can't actually fund payroll, taxes and benefits on payday.

I agree Bird. If MPP was merged into ESOP then you don't really have a MP feature with out plan doc language making it so. I would go back and check the document to see if it is there. If not then you just have this money type with J&S requirements.

Can you say administrative nightmare? No way in the world that we could keep up with 800 to 900 terminations each year. We use the balance at year end.

Any amounts paid by the Plan for the following: Paid-up annuity benefits (for plan that purchased annuities) Accident insurance Life insurance Health insurance Vision and dental care Stop-loss insurance (where claims are paid to the plan, not the employer) Health and welfare plans have the 2nd to last items, pension plans the first.